Correlation Between Wereldhave and ASR Nederland

Can any of the company-specific risk be diversified away by investing in both Wereldhave and ASR Nederland at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wereldhave and ASR Nederland into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wereldhave NV and ASR Nederland NV, you can compare the effects of market volatilities on Wereldhave and ASR Nederland and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wereldhave with a short position of ASR Nederland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wereldhave and ASR Nederland.

Diversification Opportunities for Wereldhave and ASR Nederland

0.8

Correlation Coefficient

Wereldhave  ASR Nederland

Very poor diversification

The 3 months correlation between Wereldhave and ASR is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Wereldhave NV and ASR Nederland NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASR Nederland NV and Wereldhave is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wereldhave NV are associated (or correlated) with ASR Nederland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASR Nederland NV has no effect on the direction of Wereldhave i.e., Wereldhave and ASR Nederland go up and down completely randomly.

Pair Corralation between Wereldhave and ASR Nederland

Assuming the 90 days trading horizon Wereldhave NV is expected to generate 1.27 times more return on investment than ASR Nederland. However, Wereldhave is 1.27 times more volatile than ASR Nederland NV. It trades about 0.27 of its potential returns per unit of risk. ASR Nederland NV is currently generating about 0.27 per unit of risk. If you would invest  1,519  in Wereldhave NV on April 22, 2025 and sell it today you would earn a total of  239.00  from holding Wereldhave NV or generate 15.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Wereldhave NV  vs.  ASR Nederland NV

Wereldhave NV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wereldhave NV are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Wereldhave unveiled solid returns over the last few months and may actually be approaching a breakup point.

ASR Nederland NV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ASR Nederland NV are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, ASR Nederland may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Wereldhave and ASR Nederland

The main advantage of trading using opposite Wereldhave and ASR Nederland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wereldhave position performs unexpectedly, ASR Nederland can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ASR Nederland will offset losses from the drop in ASR Nederland's long position.

The idea behind Wereldhave NV and ASR Nederland NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.